With a possible pension initiative coming to the ballot, it would be nice if public pension plans stayed on Good Behavior. Alas:
Federal investigators are looking into allegations that CalPERS violated insider trading laws this year when it purchased $26.6 million in restricted stock and then decided it didn’t need to reverse the trades when they were discovered. Two
sources with knowledge of the Securities and Exchange Commission’s
inquiry say on condition of anonymity that it involves stock purchases
that the nation’s largest public pension fund made in March, including
nearly $24 million in global financial firm JPMorgan Chase & Co. and
almost $2.7 million in Access Midstream Partners LP, an Oklahoma-based
energy company.
According to an internal memo and a fired
employee’s challenge of her termination by CalPERS, some staff at the
fund contend that the purchases – and a subsequent decision not to
rescind them – calls their managers’ qualifications and judgment into
question.
"We wanted to reverse (the trades),” said Ted Nishio, a retiree who
worked in CalPERS’ Division of Enterprise Compliance who said he was
fired after he told his boss that the fund should quickly act. “But the
higher ups said, ‘Let it be.’ "...
Full story from the Sacramento Bee at http://www.sacbee.com/2013/12/28/6031076/security-and-exchange-commission.html
Were those higher ups, by any chance, named John, Paul, George, and Ringo?
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